5 Steps to Company Formation in Dubai

Looking to start your business in the UAE? Well, kick-starting a business in the Arab should not take you more than a week once you are done with all your legal procedures. Dubai is currently one of the simplest and easiest places in the world to get your company registered as investors can open a company within the Emirate or in one of its free zones. Currently, Dubai has more than 45 fully-functional free zones and some others in the development phase. And therefore, it is quite evident that you will come across the full spectrum of regional and international law firms operating in Dubai. They provide various kinds of services from business, corporate, real estate lawyers to immigration, criminal and family members. 

So before you start your legal formalities for company formation in Dubai, you need to consider some primary elements required in the entire process:

Type of Business

It is the type of business you want to start will determine the kind of license you need for your business. No matter you apply for a commercial, professional or industrial license; the type of license defines the base of your business operations. However, while making your choice, remember that if you are interested in certain businesses like food trading, jewelry trade, veterinary activities or legal consultancy, you require further approvals from different governmental departments as well. The Department of Economic Development in Dubai provides a list of over 2100 activities you can choose from. And if you are unable to identify your specific license, you can always contact the DED. However, the free zones come with own set of regulations and approval formalities. 

Ownership of Business

As an expat, if you want 100% ownership of your company, you need to choose a license and location in one of the many free zones of the UAE. Each free zone caters to specific kinds of activities and transparency in the first step will help you find your best option. 

If you require a local license or need to operate locally, you need to have a license from Department of Economic Development (DED). DED license comes with certain restrictions on share of ownership for expats, based on different legal structures as per DED. 

Legal Structure

On the basis of the type of business and your location, there are specific rules regarding company formation in Dubai. For instance, if you plan to start a legal consultancy firm, it can be done only as a branch of company or as a separate company. Each free zone comes with its own restrictions concerning the company structure and you can always consult the official website of each zone.

Trade Name

The process of getting a trade name is a very significant part of the entire legal procedure in Dubai. The company name should ideally signify the nature of business, until and unless it is a branch of another company. If you want to go through all the rules concerning the trade names, check out the DED official website.

Share Capital

Minimum share capital is typically decided in the Memorandum of Association of your proposed company. In majority of cases, you are not required to pay minimum capital at the time of starting it. 

The biggest advantage with investors investing in Dubai is its low taxation system, low import duty and a number of double taxation agreements with other countries as well as free trade agreements. And if you want to know more about company formation in Dubai, you can always contact a law firm in Dubai.